Beams Fintech Fund participates in Infinity Fincorp’s $40M funding round

Beams Fintech Fund, a leading growth-stage private equity fund focused on fintech and financial services, has announced its sixth investment in Infinity Fincorp Solutions (Infinity Fincorp). Beams has participated as part of its Series A extension of a $40 million funding round.

Infinity Fincorp, backed by True North LLP Private Equity Fund, has in the past secured equity investments from renowned investors, including Jungle Ventures and Archerman Capital.

Led by Shrikant Ravalkar, Founder, MD, and CEO, Infinity Fincorp Solutions operates in the micro-LAP (Loan Against Property) financing space, providing Rs 3-5 lakh loans for underserved micro-entrepreneurs like tea shop owners, vegetable vendors, small machine enterprises, restaurants, provision stores, and many other businesses key to India’s economy.

Infinity Fincorp is focused on Tier III towns across Andhra Pradesh, Tamil Nadu, Telangana, Madhya Pradesh, and Rajasthan. The company has a robust presence in southern India’s micro-LAP market along with a proven track record of delivering high growth and high ROA/ROE. Infinity will use the capital for expanding the loan book and establishing a deeper presence across the states.

The overall micro-LAP segment is expected to grow at a CAGR of 15-20% over the next five to 10 years, driven by formalisation of the Indian economy, rise in income levels, and improving credit penetration. The segment will also benefit with digitization of land records, further adoption of account aggregators, and improvement in underwriting with adoption of AI.

Headquartered in Mumbai, Infinity Fincorp has a pan-India presence, with 127 branches across eight states. It has a loan book of Rs 1,100+ crore as of January 2025 and is projected to close FY2025 at Rs 1,250 crore, marking a growth of 67% in one year. Owing to its significant size (Rs 1,000+ crore), Infinity Fincorp is classified as a Middle Layer NBFC as against the earlier Base Layer.

Sagar Agarwal, Founder and Partner at Beams Fintech Fund, said the MSME credit gap in India remains a significant untapped opportunity, estimated at Rs 25.8 trillion. “Micro LAP is one of the fastest growing spaces within the NBFC segment, given the credit demand from 6 crores+ MSMEs towards growing their businesses,” he said.

Agarwal added that Infinity Fincorp has the potential be a category leader in the Micro-LAP segment. “Under Shrikant’s leadership, the company has grown 3x since FY 2022 while maintaining strong asset quality and risk management. This investment diversifies our financial services portfolio without competing with our other NBFC investments,” he said.

Shrikant Ravalkar, Founder, MD, and CEO, Infinity Fincorp Solutions, said the company was grateful to all investors supporting it in the mission to serve the vastly underserved MSME sector via technology-led efficiencies.

“We also would like to extend our heartfelt gratitude to Beams Fintech Fund, who believed in our potential. The fund raise significantly bolsters our capital position with Infinity’s net worth now above Rs 600 crore and capital adequacy at 50%, much above the regulatory requirement of 15%,” he said.

Aided by the capital raise, Infinity Fincorp’s loan AUM has crossed the Rs 1,000 crore milestone, leading to a NBFC Middle Layer classification.

Ravalkar said the company remains committed to serving the vast untapped MSME landscape of India, which has a potential credit gap of Rs 78 lakh crore. “With our in-house capabilities to serve Indian MSMEs and access to growth capital from marquee investors, we will deepen our footprint and accelerate our mission of extending credit to MSMEs.”